![]() What’s more, these lenders will report your payments to the credit bureaus, meaning you’ll be able to boost your credit score by paying off the loan. That being said, the interest rates on these loans are still much lower than those on payday loans. For example, you might end up paying around 35%. These loans do tend to have interest rates that are considerably higher than other loans. Some traditional personal loan lenders that run credit checks still offer loans to borrowers with poor credit. Below are a few types of loans available to those with bad or no credit that aren’t as expensive as some of the loan types listed above. If your score is considered poor or fair, and the downsides of no-credit-check loans put you off, you still have options. The lenders that don’t require a credit check typically don’t report payments to the credit bureaus, so even making regular payments on time wouldn’t move the needle on your score. Additionally, lenders may require origination fees, which can be between 1% and 10% of the loan amount.įinally, no-credit-check loans often don’t help you build credit and increase your credit score. Most lenders charge late fees, which can be harder to avoid if money is tight. In addition to the interest charged, you may also be subject to high fees. As we mentioned, payday loans can easily have interest rates of around 400%, and car title loans aren’t much better. But some lenders use predatory lending practices, so the loans come at a cost.įirst, no-credit-check loans tend to have high-interest rates. It’s convenient that these loans are available to borrowers that may otherwise struggle to get a loan. It’s important to understand the advantages and risks of a no-credit-check loan before you apply for one. ![]() What to consider before getting a no-credit-check loan Unfortunately, these loans often have high-interest rates and are only available in smaller amounts. Some lenders specialize in offering personal loans without doing a credit check on borrowers.
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